Total fixed costs divided by fixed-cost contribution leads to which of the following?
A) profit maximization
B) breakeven point in units
C) perceived value
D) total revenues

Question

Quizplus · Accepted Answer

Total fixed costs divided by fixed-cost contribution leads to the breakeven point in units, which is the point at which total revenues equal total costs (both fixed and variable). This calculation is important for businesses to determine the minimum amount of products or services they need to sell in order to cover their costs and avoid losses.

Total Fixed Costs Divided by Fixed-Cost Contribution Leads to Which